Citrus Production

The state of Florida is the main source for citrus juice production in the US. In recent years, the state endured an increased amount of major hurricanes. In addition to the hurricanes, two diseases called citrus canker and citrus greening created further problems. The state ordered that whenever a tree is spotted with these diseases, all the trees in one mile radius are ordered to be cut. As a result, the state lost a significant portion of its citrus-fruit bearing acreage in recent years. More importantly, the crop supply for citrus fruit has been fluctuating, and mostly declining. Such fluctuations cause an increase in the cost of obtaining the fruit, leading to higher prices for the citrus juice. The consequence of the crop supply fluctuations can be observed in the grapefruit prices.

Figure 1. Fresh Grapefruit Production and Prices in the US (Source: National Agricultural Statistics Services of the US Department of Agriculture, Annual Reports, 2001 – 2009).

So, how can citrus juice producers mitigate the risks of losing their crops and production capability?